Veerappa Gangaiah Siddhartha Hegde (1959 – July 2019) was an Indian businessman from Karnataka. He was the founder of café coffee Day and also served as board of director for Mindtree , local ventures and global firms .
He received a master’s degree in economics from St Aloysius college and Mangalore university.
Road to success:
With a start of 30000 Investment in stocks he started a company called sivan securities which was renamed as waytowealth , he established a Coffee trading company with 60 million turnover. Siddhartha also established a coffee growing and trading company with a turnover of 25billion annually, through his 12000acres of plantations.
He was the first entrepreneur to set up youth cafe parlor in India with his friend from IIM . Initially it was doubted , but as always strong minds are known to prove the nay sayers wrong, he introduced the free internet facility in cafe which attracted teenage base.
Siddhartha prime target was the youth and engaged couples, his outreach in metropolitan cities was with the slogan,”anything may happen over a coffee” . By 2018 his firm had over 1700 cafes in India and attracts 40000 to 50000 visitors a week. His approach was growing together in business and never disappointed his partners and also his employees. His motive was to make India proud of a business venture which has global competence.
He is known to be of a humble background with gracious attitude in all circumstances. He was egoless and one who had vision of top level success. Siddharttha was a mind of one in million , that is justified by his growth of coffee Day in this country.
What made the Downfall:
Siddhartha recently had stiff competition from new players like Starbucks and mushrooming of café culture in South India. This made him approach private equity funds for help and increase Investment in short term to expand his firm and also stabilise the e downward growth trajectory. Though he was not under any loss initially , his plan of earning better profits in future through private equities failed. Reasons for this are multifold:
Firstly he diversified his Investment into realty sector and other services. This has poor growth due to delays in projects. Moreover his cafe business was not in rainbow mode anymore. It has been facing stiffer competition since last 5 years.
Secondly the time had arrived for private equity. Investors started demanding their money on maturity date. He had assets bro payoff, he could have given his stake all together but he wanted to fight back and win over again.